What happens if you entered into a contract with someone or some party, and they don’t fulfill their obligation? If something like this happens, it’s called the breach of contract. When a breach of contract occurs, you may want to sue the other party. Now the question is, how will you do it, and is it worth doing it?
For many people, going through a lawsuit seems complex and problematic. It’s natural. If you are not familiar with the process, you may find it difficult for the first time. That’s why you need to know the reason and benefit to sue someone for breach of contract.
What is Breach of Contract
When a business contract is made between two parties or among several parties, it binds them into an agreement. They have become entitled to certain obligations. If any party breaches any obligation of the contract, then it’s simply called the breach of contract.
A breach of contract occurs when-
- When a party fails to perform any obligation on time.
- Doesn’t perform according to the agreement.
- Doesn’t perform at all.
What Do You Need to Sue?
The Validity of a Contract
If you don’t have a valid contract in the first place, there is no question of suing anyone. You have to show a legally binding agreement existed between you and the other party.
So, to protect your interests and rights, you need to record everything systematically. Record any emails and letters. These could be useful.
The Proof That the Contract is Breached
When the contract is made, make sure that everything is on the table. Give extra care to the details. Check and double-check that nothing is missing in the agreement. A half-baked contract could be very problematic for you. Any party could take an unfair privilege if there are some loopholes in the agreement.
So, you need a solid contract so that you can have concrete proof if anyone violates the terms and obligations of the agreement.
The Loss was Suffered
The last thing that you need to sue is that you have had a significant loss due to the breach of contract. There might be some violations of agreements that were not bad enough to bring you loss. Then, there is no real point of doing any lawsuit.
The court order significantly depends on the amount of loss and how another party is responsible for the loss.
What Do You Do to Sue?
Choose the Right Court
Choosing the right court is pivotal in suing for the breach of contract. So, the question is why there are different courts for the violation of the agreement. Well, it all depends on the nature and amount of your loss, the location of you and other parties, and some other factors.
- If all parties live in the same state, then you may file your case in any civil court or small claim court in the state.
- If the other party resides in a different state, then it’s usually pre-decided by the contract that which state will have the jurisdiction.
- If the contract doesn’t specify the jurisdiction issue, then you may file the case to your state’s civil court. If the amount of claim is significant, then you may have to go to federal court.
Get a Complaint
You must prepare a complaint document to sue someone. The complaint differs from country to country and state to state. You must make sure that you get the complaint right. You need to follow the guidelines before preparing the complaint document.
File Your Complaint
Sometimes the court issues orders or directions like that you need a particular type of paper and format of writing to file certain types of complaints. You should check it before filing a claim. Other than the grounds for breach of contract, a complaint may include this basic information-
- The name and address of every party involved in the contract.
- A statement that explains why this court has jurisdiction over the case.
- A copy or description of the contract.
- An explanation of your nature and amount of loss and suffering.
- The description of your claim.
Should I Sue for Breach of Contract?
When you sue some parties for the breach of contract, you need to consider some factors. The agreement is generally made between business partners. So you can also consider negotiation before filing a case. Sometimes, the negotiation could be more fruitful and less strenuous for you. You may want to contact with a litigation lawyer for consultancy.
The Bottom line
The contract is a core to build a company or a fund or some business agreements. It is one of the key aspects of a business. You can trust others because of this contract. So, breaching it doesn’t only cost your money but also costs your trust. You don’t feel secure in dealing with others anymore.
That’s why you need to take the breach of contract seriously. You need to know your course of action if you find the deal is breaching, and you are losing money for that. Contact our professional lawyers if you experience loss for the breach of contract